Introduction

As of December 2024, the cumulative market capitalization of AI tokens is over $72 billion. Interestingly, amongst these is AIXBT, a new AI token making waves in the crypto space. AIXBT by Virtuals has achieved some impressive milestones in recent times.

Amidst these milestones, the project has its pros and cons. This article will cover all potential investors need to know about the AIXBT project. However, before exploring AIXBT, let us introduce Virtuals, the parent protocol of AIXBT.

Introducing Virtuals Protocol: AIXBT’s Parent Protocol

The Virtuals protocol is the parent platform of AIXBT. It runs on the Base network and supports decentralized AI, gaming, and blockchain solutions. In other words, it is an AI x Metaverse protocol.

The creators of Virtuals envision improving virtual interactions in the Web3 space by integrating artificial intelligence and metaverse technologies. The Virtuals protocol has multiple use cases or real-world applications. For example, it can be integrated into data analysis in the financial and health sectors. By leveraging artificial intelligence, Web3 users can access useful data insights in these industries. Additionally, the protocol’s real-world application cuts across the metaverse and the creation of generative AI.

How Does the Virtuals Protocol Work?

The Virtuals team aims to enhance virtual interactions in the digital world and leverage generative AI to create images, music, and virtual environments. To achieve this, the Virtuals protocol enables users to create AI agents.

The Virtuals protocol functions like a crypto launchpad for AI projects. Users can purchase the VIRTUAL token to deploy an AI agent. Users need a minimum of 10 VIRTUAL tokens to launch an agent.

The steps involved in deploying an AI agent on Virtuals are outlined below:

• Purchase 10 VIRTUAL tokens
• Connect your wallet on the Virtuals website (https://app.virtuals.io/). The platform supports the Base network.
• Click “Create New AI Agent”
• Select “Launch a Token”
• Input the features or characteristics of the AI agent
• Deploy the AI Agent

Once the AI agent has been deployed, the agent token created will be available for trading. The token becomes a part of a bonding curve where users can trade it. Further, if the agent token reaches a market capitalization of $420,000, its liquidity pool will be deployed on Uniswap.

Virtuals can create two kinds of AI agents: Prototype agents and Sentient agents.

Prototype Agents

Source: Virtuals Website

Prototype agents are AI systems designed to test a Web3 concept before the project is fully developed. This enables users to improve an AI model, evaluate performance, and gather feedback before a project launches.

The Virtuals protocol enables users to create Web3 AI prototypes seamlessly. Some prototype agents launched by ecosystem participants on the Virtuals protocol include Riddle, Lumi, and Efi.

Sentient AI Agents

Source: Virtuals Website

Users can create sentient AI agents on Virtuals. Sentient AI agents exhibit consciousness and mimic natural emotions. Sentient agents on the Virtuals protocol are built to provide information entertainment and enhance productivity and creativity.

There are hundreds of sentient AI agents built on Virtuals. Some sentient agents launched on Virtuals include G.A.M.E, Luna, and AIXBT.

What is AIXBT?

AIXBT is a sentient agent deployed on the Virtuals protocol. It is an AI-powered crypto market intelligence platform designed to give token holders an edge in the competitive cryptocurrency space. The platform automates narrative detection and provides alpha-driven analysis, tracking trends and offering insights derived from multiple data sources, including Crypto Twitter and CoinGecko.

AIXBT offers users real-time blockchain data integration. The platform aggregates live data from Twitter, one of the world’s largest social network platforms, which possesses a bulk of Web3, crypto, and blockchain-related data and narratives. It offers tweet tooltips and timeline markers for precise information analysis.

Recently, AIXBT was also integrated with Coingecko, one of the largest crypto data analytics platforms. AIXBT by Virtuals was created to fetch prices of crypto assets, market cap, market trends, and other relevant statistics that could improve a trader’s decision-making process. The platform identifies trending narratives influencing the market. This data is then aggregated, enabling investors to make informed trading decisions.

While the platform strives to be accurate to a large degree, the team has warned investors that its AI analytics, like many other AI analytics platforms, is not fail-proof. Traders could make decisions that could lead to losses.

Brief History

AIXBT was created in October 2024 as a subsidiary of the Virtuals protocol. The core team behind the project decided to kick-start the experimentation with an analytical AI, which led to the birth of AIXBT.

The AIXBT project has the following core team members: Prakash Somosundram, Colin Choo, Christopher Johnson, and Matthew. All four members are passionate web3 entrepreneurs with a mix of tech-savvy individuals. Prakash is a seasoned fintech and blockchain expert with a background in entrepreneurship.

On the other hand, Colin Choo is an AI and software expert, while Christopher Johnson is a digital marketing and virtual reality expert. He uses his expertise in the field to stir the project’s user engagement. The team also consists of a cybersecurity expert named Matthew.

AIXBT by Virtuals Milestones

• AIXBT got listed on some notable exchanges. Gate.io is currently one of the top exchanges that offers AIXBT trading. This listing enhanced its visibility and provided more trading options for users, contributing to the growing adoption of VIRTUAL.
• The AIXBT project has gained massive traction, catching the attention of hundreds of thousands of Web3 users within just one month. AIXBT currently has about 100,000 Twitter users, and the project is well-positioned to onboard multiple more users in the coming months.
• AIXBT reached a market capitalization of $200 million in December 2024. This impressive milestone implies that AIXBT by Virtuals has surpassed over 20,000 cryptocurrencies by market capitalization.

AIXBT vs. Artificial Superintelligence Alliance (Fetch.ai) vs. Aerodrome Finance

All three Blockchain protocols are relatively new and have recently experienced sporadic growth in market cap.

Blockchain Network

AIXBT and Aerodrome Finance run on Base, a new layer-two network on Ethereum. Artificial Superintelligence Alliance (ASA), formerly Fetch.ai, was built on the Cosmos network.

Tokenomics

AIXBT and Fetch.ai have a deflationary model. The maximum supply of AIXBT is 1 billion tokens, while Fetch.ai has a maximum supply of 2.7 billion tokens. On the other hand, Aerodrome Finance (AERO) has an inflationary model, allowing infinite token creation.

Theoretically, tokens with a deflationary or capped maximum supply have a greater appreciation potential than tokens with an infinite supply.

Utility

AIXBT focuses on crypto intelligence using AI-driven analysis and token-gated access. Similarly, Fetch.ai unlocks access to AI technology, and its use case focuses on optimizing various services like decentralized finance, travel and transportation networks, and smart energy grids.

Aerodrome Finance is neither directly associated with AIXBT nor the Virtuals Protocol. However, Aerodrome Finance is a DeFi protocol focusing on liquidity provisioning and yield generation.

Pros and Cons of AIXBT

The AIXBT protocol has the following pros and cons:

Pros of AIXBT by Virtuals

• The integration of advanced AI enables a seamless trading experience for AIXBT holders. Users with less time to monitor trading chats can capitalize on the AIXBT protocol to maximize profits.
• The AIXBT token is evenly distributed. The creators’ allocation is less than 5%, and no single wallet holds more than 5% of the total supply. This even distribution limits the possibility of a rug pull.
• The protocol merges AI with crypto trading data, positioning itself as a leader in shaping the future of digital analysis. This futuristic approach makes it appealing for those looking to invest in or participate in the next wave of technological advancements.

Cons of AIXBT by Virtuals

• The technology requires a significant investment. Users with less than 600,000 AIXBT tokens cannot benefit from the platform’s analytics. As of 8th December 2024, 600,000 AIXBT is worth $108,000. This could be a barrier for smaller investors or users with limited budgets.
• Despite using blockchain for transparency and immutability, no system is immune to cyber threats or vulnerabilities. The platform could still face potential risks, including hacking or manipulations.
• The team clearly stated on AIXBT’s Twitter page: “Experimental, not financial advice.” AIXBT’s AI is still in its early stages, and analytical errors are expected. Hence, investors could lose all or part of their investments.

What is the AIXBT Token?

The AIXBT token is the platform’s native cryptocurrency. It grants holders access to the AIXBT analytics suite, creating a direct link between token ownership and platform utility. A minimum of 60,000 tokens is required to unlock the platform’s insights, adding exclusivity to its offering.

As of December 8th, 2024, the AIXBT token has a market capitalization of $158 million. Its total supply is 1 billion tokens, with a circulating supply of 855 million.

Is AIXBT by Virtuals a Good Investment?

AIXBT offers a unique proposition for those actively involved in cryptocurrency trading and market analysis. It combines innovative AI technology with exclusive token-gated access, ensuring value for its users. However, it carries risks like any investment, especially given its dependency on Twitter trends and the broader crypto market’s volatility.

AIXBT by Virtuals combines AI, blockchain, and crypto intelligence, offering users a powerful tool to navigate the dynamic cryptocurrency landscape. By integrating advanced technologies within a cohesive ecosystem, AIXBT and Virtuals Protocol are setting the stage for the future of decentralized market intelligence.

How Can You Own AIXBT Tokens?

Users can follow a simple process to own AIXBT tokens and join the ecosystem. The token can be purchased from its official website or a reputable crypto exchange like Gate.io.

Setup a Wallet

To own AIXBT tokens, purchase them through an exchange. To do this, users can create a Gate.io account, complete the KYC process, and deposit USDT into the account to buy the token.

Take Action on AIXBT

Learn more about AIXBT by Virtuals on Gate.io.